The Start Up Nation is also the Never Again Nation.

Operation Arising Lion with US support has brought a huge feeling of relief from nuclear threat to Israel, but at a heavy human and financial price.

The Iranian missiles reportedly carry a much heavier payload of up to 1 ton, around 5-10 times the “norm” until now. The resulting property damage and casualties have been correspondingly heavier.  And there are still hostages in Gaza…..

The IDF is endeavoring to protect us. What can we do?

1. Take shelter:

Protect yourself in a safe room or shelter when you receive warnings via a phone app sirens. Don’t take chances.

2. Compensation claim:

If your property has taken a hit, you can claim government property compensation here: https://www.gov.il/en/service/online-direct-damage-claim

Upon completion of filling in all the required details, a temporary application number will appear that will be used by the system. After the application is approved, a permanent claim file number will be received and a notification of its number will be sent by text message to you. Upon approval of the claim file number in the Tax Authority’s online system, the claim processing process will begin.

The ITA property tax division sends appraisers/engineers to inspect and assess damage caused to properties. The ITA announced on June 16 there are 90 teams around Israel. In the event of damage to a vehicle, a Police certificate signed by a Police officer must be obtained.

Who can file a claim:

• An Israeli resident whose property was damaged due to an act of hostilities/war.
• A company whose property was damaged due to an act of hostilities/war.

3. Property Insurance

Regular insurance companies typically won’t pay out war claims, but the Property Tax (Mas Ricush) division of the Israeli Tax Official will do so.

In case of damage to items in a war, each item is automatically covered free of charge up to a maximum value depending on the type of item and number of people in the family. For example, in 2025, the cover for a married couple ranges up to the following amounts: furniture – NIS 25,187 plus NIS 5,092 per child; clothing – NIS 5104 plus NIS 766 per child, electrical appliances – NIS 30,914 plus NIS 518 per child; other household items – NIS 24,312 plus NIS 2,228 per child.

If that is not enough, you may optionally pay to insure your household items to a higher value each year. This does not apply to art, jewelry, antiques or cash. The premium is calculated at 0.3 percent of the additional value. The additional insured value cannot exceed NIS 979,624 in total. To apply for this additional insurance visit: https://www.gov.il/en/service/optional_insurance_war_damages_compensation.

4. More information:

You can click on the above links. Or you can phone the government’s Compensation Fund at tel:  *4954. Their official operating hours are: Sunday to Thursday from 8:15 Until 17:45.

5. Tax Reporting Extensions:

Tax may not be uppermost in your mind, so the ITA is giving more time. The ITA has announced various extensions of the reporting deadlines due to the security situation.

May 2025 VAT, payroll and national insurance returns are now due on June 26. Annual tax returns of individuals for 2024 are now due July 31 (companies June 30) or  later if covered by an arrangement for between the ITA and CPA Institute for accountants to spread their reporting workload.

The deadline for capital declarations (Hatsharot Hon) are similarly extended. Annual payroll returns for 2024 (Forms 126 and 856) are now due on July 31.

In the case of a small business (Osek Zair) with annual revenues below NIS 120,000, the 2024 returns are now due on July 31 – or a month later on August 31 in the case of such business proprietors that receive IDF reservist compensation, maternity pay or business “indirect damage” (loss of business) war relief. Note that some freelancers in some professions are required to report as an authorized dealer (Osek Morshe) not as a small business (Osek Zair) so take professional advice if uncertain of your status.

And dreaded bank freezes (ikulim) should no longer be imposed on late taxpayers before June 30 – not far away – “except in exceptional cases”

Comments:

The Never Again Nation has been put to the test and has surprised many, but not everyone.

Those who have studied history from the 1930s to the prelude to the 1967 six day war are less surprised.

It has involved detailed planning, rapid improvisation, hope spanning 2,000 years and unity.

Keep safe in this difficult period.

Next Steps:

Please contact us to discuss any of the above matters further, or any other accounting/tax matter.

As always, consult experienced professional advisors in each country at an early stage in specific cases.

[email protected]

© Leon Harris 23.6.2025